In 2018, the Land Authority published tender documents for the construction of 2,526 apartments in Ashkelon. However, a clerical error was discovered in these documents that resulted in apartment buyers paying 10% more than they should have in the “Housing for New Residents” lottery. Some buyers overpaid by as much as 150 thousand shekels due to this mistake. The error was caused by a difference in the timing and volume of linking the cost of an apartment to the cost index of construction work, which is standard practice but not followed in the “Housing for New Residents” program.
The Land Authority’s tender committee identified the mistake and ruled that Peretz Bonei HaNegev, a company that built 180 apartments in Ashkelon, had acted in bad faith by concealing the error in documentation and only revealing it five years later after customers had raised complaints. The ruling is expected to impact other companies as well, and it is important for both developers and buyers to ensure that all documents are carefully reviewed and errors are promptly addressed to avoid any financial discrepancies or legal issues.
